UNITED STATES
A group of US Senators is urging the nation’s top consumer protection Agency to get tough with the servicer of the troubled Student Loan Forgiveness Program.
The 23 Senators have written to Director of the Consumer Financial Protection Bureau (CFPB), Kathleen Kraninger (pictured), saying she should press on with her investigation of the Pennsylvania Higher Education Assistance Agency, better known as FedLoan.
Last month CFPB examiners were blocked by the Department of Education, which essentially told loan servicers not to cooperate or provide the examiners with information.
In the letter to Ms Kraninger, the Senators said PS workers and their families needed immediate protection from ongoing harm.
“We therefore ask that the CFPB do its job and immediately open an enforcement investigation into FedLoan’s servicing practices, management of the Public Service Loan Forgiveness Program and other potential violations of Federal consumer financial laws,” the Senators’ letter said.
The Public Service Loan Forgiveness Program aims to help police, military service members, teachers, people who work at not-for-profit organisations and in low-paying jobs in PS Departments.
If they make qualifying payments for 10 years, the program promises to forgive the remainder of their student loan debt.
However, until now, the program has rejected 99 per cent of people who thought they had done what was required when they applied to get their loans forgiven.
Washington, DC, 31 October 2019
